Carotenodermia itself is not harmful and is considered a cosmetic issue rather than a health threat. It occurs when carotenoids accumulate in the outermost layer of the skin, the stratum corneum. This condition does not indicate an underlying pathological process and does not affect internal organs. However, it is essential to differentiate carotenodermia from other medical conditions with similar symptoms, such as jaundice, which can signify more serious health issues.